In most places new supply is high end and is making more housing available for people who don’t lack access.
In most places, new cars are more expensive than used ones, but if you stopped providing new cars, the price of the used ones would shoot up as everyone started competing for a dwindling supply of cars.
Same goes for housing.
Also, it's a longer term process with housing, but 'filtering' is a real thing: https://oregoneconomicanalysis.com/2016/05/25/housing-does-f...
An unspoken consequence of cash for clunkers. Practically overnight 100k miles was considered "low mileage", which was ridiculous before people started needlessly trashing perfectly good used cars.
[1] Had a hard time finding statistics for 2009, but it’s in here: https://www.niada.com/PDFs/Publications/2010IndustryReport.p...
For one, most property and real estate appreciates in market value on it’s own. This makes spec construction viable, and why most new apartment buildings in expensive cities are ”luxury” units and rented for very high rates. The owners are happy to let them sit empty and starve the market to max out demand when they know there is enough jobs in the area that people are competing heavily to move there.
In addition, the markets are tiny compared with cars, which are easy to move to cars to other markets (cities).
The reason is that there are implicit price floors through tax policy. It’s cheaper to “lose” money on property to offset taxes on winning properties.
Therefore, if you say it's bad to build new housing if it will end up being expensive, you're really saying there should be no new housing built during a housing shortage...
I find it's often better to think it terms of number of homes and housed people than in prices. If 100 new apartments are built, it's hard to say what will happen to prices exactly. But it's undeniable that there will be 100 more homes, and 200-300 more people can live indoors in that city, than without the project.
vs. the article:
> ... how expensive new housing today would become affordable old housing tomorrow ...
For complexes, everything is based on depreciation cycles. Apartments typically get shittier over a relatively short timeframe.
People are outraged when you put apartments and condos in their multi-single-family cities because "lower class" people will move in. Don't those "lower class" people currently lack access to live these places?